Soon to be a much more familiar sight in Phuket? A Tiger Airways Airbus A320-200.

There can be little doubt that AirAsia has had an effect on the bottom line at Thai Airways International, offering discounts that the Thai flag carrier has not even tried to match.

Thai did try to claw back some of the revenue that was heading for AirAsia through its involvement in Nok Air, in which it has a 39% stake.

But this, apparently, is not enough. Nok Air has not been exactly a roaring success; it did make forays into India and Vietnam but has since pulled back to concentrate entirely on the domestic market, flying from Bangkok to 13 destinations in Thailand.

Thai’s president, Piyasvasti Amranand, laid out the problem plainly. “Our market share used to be 82%. But as air travel [has grown] our share has diminished. Even with Nok Air, together our market share is now 50%,” he said.

Nok is a great deal smaller than Thai AirAsia; it has just five aircraft compared with Thai AirAsia’s 18.

But now Thai has pencilled a deal with Singapore’s Tiger Airways to create a new airline, Thai Tiger Airways, to go head-to-head with AirAsia.

Hard times make for strange bedfellows. Tiger’s biggest shareholder is Singapore Airlines, Thai’s biggest rival in the region (yes, they are both members of the Star Alliance but there is no code sharing between the two, which says something about their relationship).

The important element, however, is the involvement in Tiger of RyanAsia Ltd, the regional offshoot of the highly successful European low cost carrier (LCC) RyanAir, which now carries more international passenger than any other airline in the world.

Tiger is also no stranger to Thailand. It has been flying to Phuket for six years, and also serves Udon Thani and has, from time to time, flown into Krabi and Haad Yai.

A memorandum of understanding, which foresees Thai and Tiger establishing the new joint-venture airline was signed on August 2.

The announcement of the signing, with the partners planning to have the new LCC off the ground early next year, ruffled not a few feathers in Bangkok. The Thai Ministry of Finance is Thai’s biggest shareholder, with 43%, followed by the government’s Vayapuk Fund with 15.5%  and the Government Savings Bank with 11% – for a total of just under 70% government ownership.

Transport Minister Sophon Saram harrumphed that things were moving far too fast. While he said that his ministry would do nothing that might be seen as interference in the airline’s decision-making, he warned that if the proposed new airline fails, Thai executives “must take full responsibility”.

So far there is no sign that Thai execs plan to back away. Piyasvasti rushed around the day after the MOU signing, visiting Sophon, Finance Minister Korn Chatikavanij, power broker Newin Chidchob and Deputy PM Suthep Thaugsuban to “clarify” the need for the new airline.

So far, thing still seem to be on track, with the new airline to be owned 51% by Thai and 49% by Tiger.

If and when it does get off the ground, expect to see the lucratively busy Bangkok-Phuket route becoming one of the main battlegrounds between Thai Tiger and AirAsia. That’s got to be good for passengers’ wallets.

Thai Tiger to go toe-to-toe with AirAsia is an article from: Phuket Observer - Phuket lifestyle magazine.

Now here’s a deal for anyone in Singapore: Fly with Tiger Airways to Phuket, free. Okay, so you will have to pay something – tax is S$45 (governments always want their pound of flesh) and there are unspecified “charges”. But that’s still a pretty fine deal.

You can also fly to Phuket, return, from Bangkok, for as little as 486 baht, depending on how far ahead you book. That’s on Air Asia. Nok Air is offering the same flights for as little as B257.

These are some of the guys already flying into Phuket. Now Virgin Blue is apparently planning to get in the game with daily flights from Australia.

Budget airlines seem to have spotted something that surprisingly few others have: that holidays in Phuket are really cheap at the moment, with hotels offering all sorts of deals – not surprising when the Phuket Tourism Association is talking about occupancy rates of 25%, compared with the usual figure at this time of year of around 50-60%.

Phuket’s been hit this year by a triple whammy – the Global Economic Blues, the political violence in Bangkok and the Mexican flu.

Let’s look at these problems. The Blues, of course, affect people everywhere. Even if they still have their jobs, many want to hang on to their money. But if you raise your eyes from the piggy bank clutched in your trembling hands, you’ll find that this is a time for great deals.

You’ve already had a taste of the air fares. Hotels in Phuket are just as accommodating. For example, the sooper dooper Serenity Terraces – where Grand Prix hero Kimi Raikonnen has a pied à terre – is currently offering stays for as little as B4,000 a night for couples.

The J W Marriott is offering 50 percent off, Hilton Phuket Arcadia‘s charging around B4,500 a night per room, including taxes, and you can get two nights at the Sheraton Grande Laguna for less than B4,000. That was today. Who knows what tomorrow holds?

So much for the Blues. Now the reds and yellows. In Bangkok, everything is quiet again – no riots by red shirts or yellow shirts for a month. That’s not to say that everything is perfect; there’s probably a way to go before the politics of Thailand gets back to a normal temperature. But Phuket’s 800 km away, and there never was a problem on the island. Bangkok might as well be another country. (Some Phuketians will tell you that it is.)

As for Mexican/swine flu aka H1N1, let’s take a look at the numbers. As of May 21, the World Health Organization lists 85 deaths worldwide. According to the US National Lightning Safety Institute, 24,000 people die each year from lightning strikes. Does that put things in perspective?

Seriously good travel deals in Phuket is an article from: Phuket Observer - Phuket lifestyle magazine.

Rosalynn Tay, Managing Director of Tiger Airways Singapore said, “Tiger Airways continues to ramp up flight frequencies to popular travel destinations to provide more flexibility in passengers’ choice of flight schedules. Thailand is the land of smiles and these extra flights between Singapore and Thailand will ensure many more smiles with even more famous Tiger Airways low low fares. With fares as low as Sin$19.99 (excluding taxes and fees) to the Thai Kingdom, pounce like a Tiger and grab our great fares now.”

The new flights to Phuket mean that travelers have more choice and flexibility for that great fly and flop holiday. Now travelers can fly in the morning or evening to maximize their holiday with minimum fuss.

Rosalynn Tay said, “We all know that it is not always possible to get a day off when half the office is headed overseas for that cheap weekend getaway. With the morning and evening flight options, our savvy Tiger Airways’ passengers can now choose a convenient flight time that suits their busy schedules.”

Tiger Airways to Increase Flights to Phuket is an article from: Phuket Observer - Phuket lifestyle magazine.